NJ Statewide Gaming Thrives Despite Land-Based Casinos Revenue Drop
The revenue from brick-and-mortar casinos in Atlantic City dropped by 2.4% from last year. But online gambling and sports betting offset revenue losses
The latest revenue figures from Atlantic City’s nine physical casinos reveal a decline in earnings for May 2023 compared to the same month the previous year. Despite this setback, the overall gaming industry in the state of New Jersey experienced positive growth thanks to online gambling and sports betting.
According to reports, the combined revenue from the brick-and-mortar casinos in Atlantic City last month reached a little over $227.3 million, marking a 2.4% year-over-year decrease from last year in May, when casinos had generated over $233 million in revenue, a growth of 15% over May 2021. The decline in retail play during May 2023 is noteworthy as the month had the same number of weekend days and also the same Memorial Day holiday weekend as the previous year.
Online Gambling and Sports Betting Offset Revenue Losses
Borgata, Atlantic City’s leading casino, maintained its prominent position with a land-based gaming win of circa $60.5 million. However, even Borgata saw a 4.5% decline in revenue compared to May 2022. Hard Rock, the second-largest casino in the city, recorded a 6.5% year-over-year drop, earning roughly $38.8 million on its gaming floor. In a surprising turn, Ocean Casino achieved 17% progress and generated $29.8 million in revenue, ranking third.
Other casinos in Atlantic City faced mixed results. Tropicana’s GGR declined by an insignificant 0.2% to $21.6 million. Harrah’s revenue dropped over 10% to $19 million, placing fifth, while Caesars witnessed a nearly 10% drop, earning $18.3 million. Resorts saw a 5% decline to $13.4 million, while Bally’s recorded a 4% increase, generating $13.2 million. Golden Nugget managed the weakest market share, at merely $12.7 million, a 1% decline.
This marks the second consecutive month of lower in-person play in Atlantic City compared to the same period in 2022, as April’s retail income also saw a drop of approximately 2%.
However, the decline in brick-and-mortar revenue was offset by the robust performance of online gambling platforms. The New Jersey Division of Gaming Enforcement (DGE) reported that online gambling revenue shot up by 18.7% to the tune of $161.4m. Online slots, particularly those with no deposit bonus codes attached to them soared 19% to $159.1m, while peer-to-peer poker also made a significant increase of 1.7% to $2.4m.
Sports betting further contributed to the positive growth of New Jersey’s gaming industry in May. Sportsbook revenue surpassed 33% to $82.1 million, including both retail sportsbooks at casinos in Atlantic City as well as online sports betting.
Atlantic City’s Gaming Industry Shows Resilience Despite Challenges
All in all, New Jersey’s gaming industry generated a total revenue of $420.9 million in May 2023, reflecting a 9.4% increase compared to May 2022.
James Plousis, chair of the New Jersey Casino Control Commission, acknowledged the decline in brick-and-mortar revenue but highlighted the overall strength of the overarching gaming industry in New Jersey. Plousis stated that May 2023 was Atlantic City’s “second-best May in nine years”, thanks to the continued success of internet gaming and sports wagering, which helped push the gross gaming revenue beyond $400 million for the third month in a row.
Year-to-date, gross gaming revenue in New Jersey surpassed the $2 billion mark, reaching $2.031 billion after May’s results. Plousis pointed out that 2023 is the quickest the state’s gaming industry has reached the $2 billion milestone in any given year.
Despite the report’s optimistic slant, the declining revenue from Atlantic City’s physical operations highlights the challenges the casino town is currently facing. Casino executives have raised concerns about the potential impact of eliminating indoor smoking, noting that a significant portion of iGaming revenue is shared with third-party interactive partners. The Casino Association of New Jersey has cautioned state legislators that a ban on indoor smoking could potentially lead to a 25% decline in in-person revenue for the casinos.
Finally, as the industry continues to navigate various challenges, stakeholders in Atlantic City are looking for strategies to maintain growth and ensure a prosperous future for the city’s casinos.
